Markets & Finance

Elan Slips

June 25, 2003

Irish drugmaker Elan plans to file with the SEC a Form 12b-25 to extend to a July 15, 2003, filing date for its annual report due to current talks among Elan and the SEC regarding appropriate accounting treatment.

Circuit City (CC) rejected an $8 per share takeover offer by Carlos Slim Helu Group, which holds a 9.2% stake in the consumer electronics chain. S&P upgraded to hold from avoid. Lehman raised its target, but remains cautious.

ImClone Systems (IMCLE) received $3 million from Merck KGaA for the achievement of an Erbitux clinical-development milestone. Erbitux is a treatment for non-small cell lung cancer.

American Airlines parent AMR Corp. (AMR) reported positive cash flow from operations in May due to reduced costs and improved unit revenues; AMR says it would expect similar results in June if a favorable environment continues. CS First Boston upgraded to outperform. S&P upgraded to hold.

Avista (AVA) says a FERC judge denied a request to resolve an investigation of Avista, and reinstated a procedural schedule that calls for further testimony and hearings in the case that Avista is accused of improper trading strategies.

Kana Software (KANA) sees a 40-cent to 45-cent second-quarter loss on $11 million to $12 million revenue.

Symbol Technology (SBL) now expects to file a 2002 10K report in the second-half of July, vs. the previous goal of June 30. Symbol now sees a restatement impacting 12% of the total revenue previously recorded for 1999 and 2000. S&P reiterates avoid.

Williams Companies (WMB) and Energy Partners (ENP) mutually agreed to terminate an agreement for the sale of certain Williams assets to Energy Partners.

BP (BP) plans to reduce by nearly $1 billion the amount it will pay to buy a 50% stake in a joint venture with Russian oil producer TNK International, a revised deal would value BP's investment at about $5.75 billion, according to The Wall Street Journal.

Panera Bread (PNRA) posted 3% higher total system same-store sales for the four weeks ending June 14.

Biovail (BVF) says the FDA issued an approvable letter for its antidepressant Wellbutrin. Approval is expected in the second half of the year.